Chapter 117: Advertising Alliances

With the average daily number of page views of the 3721 navigation website exceeding 10 people, Tang He finally began to plan to introduce advertising.

It was only when he searched for advertising alliances on the Internet with great anticipation that he was stunned to find that there were no advertising alliances in 1997!

In March 1995, Yahoo was officially founded.

In order to get out of the loss-making situation, Yahoo boss Yang Zhiyuan genius came up with an online advertising sales service, which not only attracted countless offline advertisers, but also provided Internet people with a way to make money and make money.

Although he doesn't know the situation in Huaxia, Tang He has seen some American data on the Internet.

According to reports, the size of the entire advertising market in the United States is about $150 billion a year. That's about $500 per American, and about $10 for a business to attract a new customer.

In fact, the traditional advertising industry collects money on a 1,000-show basis.

For example, if you charge $500 per 1,000 pages of an advertisement in a newspaper, and the newspaper has a circulation of one million copies, then the advertising company has to pay the newspaper $500,000. The same goes for advertising on TV, in magazines.

In the United States, newspaper subscriptions account for only a small part of their income, and advertising costs are the real big part, so some newspapers are even free.

Yahoo's Yang Zhiyuan completely copied the business model of traditional media advertising such as newspapers, that is, free services, and then used advertising money to support himself and develop.

Then other internet companies quickly copied Yahoo's business model.

It's just that before 2000, e-commerce sales were not actually high, and the advertising expenses were pitiful.

Therefore, the advertising cost of the Internet can only rely on the "brand" advertising fee of the world's top 500 companies.

There is an unwritten convention in brand advertising, and the emphasis is on the right door.

That is, the company of the first-class brand must advertise on the first-class media, even if a second-class media has the same audience, that company cannot advertise on it, because it will affect its own brand.

So, those companies that advertise their brands will never advertise on second- or third-rate websites.

For example, although the cleaning company spends more than 7 billion yuan on brand advertising every year, it has never spent a penny on second-rate websites.

As a direct result, other Internet companies except Yahoo do not make money from brand advertising at all.

So Yahoo, which has always had meat to eat, didn't think about any advertising alliance at all.

And Google, which can make tens of billions of dollars a year from text ads the size of tofu cubes next to search results, will not be established until the second half of next year.

As for Baidu, which imitated Google to establish China's first advertising alliance, there was not even a ghost shadow at this time, and Li Yanhong didn't know how to draw circles in that corner of Silicon Valley at this time.

But now Amazon in the United States has launched an advertising service.

Other sites can run Amazon's book ads on their homepages, and Amazon will pay for Amazon books when someone buys an Amazon book through an ad link.

It's just that Tang He can't let Chinese netizens buy Amazon books!

It's going to be a sea crossing!

Amazon recognizes Huaxia's orders for the time being, not to mention, there are tariffs, if it weren't for the simplification of the procedures in Haitao in the previous life, it is estimated that many netizens will be discouraged.

Besides, will there be Chinese netizens willing to spend so much money to buy books on Amazon in the United States?

Tang He remained skeptical.

Just look at how developed the piracy industry in China is to know the result.

Tang He was a little dumbfounded.

Do you want him to contact the big Fortune 500 companies himself?

In a few years, Huaxia will join the WTO, and Huaxia's huge market has also made these large multinational enterprises jealous. Many of the world's top 500 companies have now begun to deploy in China, and they have a lot of advertising money on hand and have nowhere to spend.

Don't you see how much Intel and Microsoft have advertised in Huaxia?

Therefore, it is not impossible for the ideal country to contact these multinational companies by itself, but it is necessary to make the 3721 navigation website one of the Internet websites with the highest traffic in China, and only in this way can it meet the investment standards of these multinational enterprises.

It seems that for the survival of the ideal country, 3721 needs to be further promoted!

Damn, it's just that in this way, I'm afraid the company's funds will be exhausted!

Tang He gritted his teeth and almost accepted his fate.

Then at this moment, he had a flash of inspiration, and a thought popped into his mind.

In the previous life, Huaxia Internet was not only an advertising alliance with Baidu.

In addition to Baidu Advertising Alliance, there are Alibaba Advertising Alliance, Sogou Advertising Alliance, Sina Advertising Alliance, Tencent Advertising Alliance......

Almost every top internet business has its own ad network.

So why are these companies swarming to launch ad networks?

I think there is no other reason than money!

In the previous life, there were only three top enterprises recognized by Huaxia Internet.

Among the three, Taobao relies on e-commerce, Tencent relies on games, and only Baidu relies on advertising.

This shows how profitable advertising is!

can support an industry giant like Baidu, and the market value of Huaxia's advertising industry will definitely exceed 100 billion!

So......

If I preemptively set up my own ad network and capture the market......

Tang He was a little excited when he thought about it.

Foreign Fortune 500 companies pay attention to advertising, but these domestic companies are completely different.

Why was Ma Qingyang able to earn his first pot of gold with a Chinese yellow page?

It's not like those companies want to sell their products online.

In his previous life, the cardinal leader Zhou Hongwei relied on the "online real name" service to become the first profitable search company in China, and the same is true.

Looking at it this way, there is a lot to be done to seize this market!

Only the first person to eat crab can eat the fattest crab paste!

Thinking of this, Tang He began to collect information on the Internet.

At the same time, he casually pulled out a blank piece of manuscript paper from his desk and took a pen to organize his thoughts.

In the past life, many people liked to use Google's products and services, search, maps, email, YouTube, ......

And Google's services are almost all free, so how does Google make money?

You must know that Google is one of the most valuable Internet companies in the world, and it has always been conducting research in the most cutting-edge technology field. To support the operation of such a behemoth, the amount of money needed is simply huge!

Actually, the answer is very simple.

Google makes money from search ads and ads related to web content.

But why did Yahoo, which is now also making money from advertising, go out of business a few years later?

This is the difference between Google and Yahoo in terms of advertising models.

In fact, Yahoo's advertising business is actually no different from the traditional advertising industry.

First, Yahoo operates with server and bandwidth fees, which are equivalent to the cost of paper and printing for a newspaper.

Second, Yahoo's advertising and marketing department is exactly the same as the traditional advertising industry, either relying on its own employees to pull ads, or entrusting advertising wholesalers to find ads.

Third, Yahoo still basically handles orders by hand.

Although Yahoo uses a database to manage all of its ads, how ads are delivered, and where they are located on its type of page, are semi-manual tasks.

So, while Yahoo Inc. and Microsoft's MSN are very good at networking technology, and it may be more efficient than traditional newspaper media, it still operates in a way that is a copy of traditional media.

But it's not the same since Google.

As a company, Google certainly has basic operating expenses, including data center overhead and bandwidth expenses, which no one can save.

However, Google largely eliminates the cost of the second and third types of advertising.

That's an ad network!

The advertising alliance platform connects upstream advertisers with downstream small and medium-sized websites that join the alliance, provides advertisers with efficient online advertising promotion through its own ad matching technology, and provides advertising revenue for many small and medium-sized sites.

This business model is almost a full generation ahead of the traditional advertising industry, including Yahoo and Microsoft MSN. In terms of effect, it is completely a battle against a broadsword and spear with foreign guns and cannons.

It's just that......

Do you have what it takes to develop such an advertising system?

Tang He has some gains and losses.